Curiosity in cobalt has elevated in recent times on account of its use within the lithium-ion batteries used to energy electrical automobiles.
World cobalt mine manufacturing reached a document excessive of 230,000 metric tons (MT) in 2023, based on the US Geological Survey (USGS), with the assistance of elevated output from the Democratic Republic of Congo (DRC) and Indonesia.
The DRC is the world’s largest producer of cobalt by far, with its output reaching 170,000 MT final yr — virtually 74 % of worldwide provide. For comparability, the second largest cobalt producer Indonesia put out 17,000 MT of the battery steel.
Not surprisingly, the DRC is house to the world’s 5 largest cobalt mines, based on the latest knowledge supplied by S&P Global Market Intelligence. For buyers who wish to be taught extra concerning the sector, right here’s an summary of these mines.
1. Tenke Fungurume
Complete 2023 manufacturing: 28,500 MT (displays estimated manufacturing values)
Tenke Fungurume, situated within the DRC’s Lualaba province, is 80 % owned by China’s CMOC Group (OTC Pink:CMCLF,SHA:603993) and 20 % owned by DRC state mining firm Gécamines after Freeport McMoRan (NYSE:FCX) offered Tenke to CMOC in 2016. Tenke Fungurume was the topic of a royalties dispute between the 2 JV companions, which resulted in COMC making a US$2 billion settlement payment to Gécamines in July 2023.
Along with its cobalt output, the mine is the DRC’s largest copper producer.
Cobalt manufacturing out of Tenke in 2023 elevated by almost 85 % from 2020 ranges. This spectacular progress, alongside operations at its new Kisanfu mine, mentioned under, have been largely answerable for CMOC overtaking Glencore (LSE:GLEN,OTC Pink:GLCNF) because the worlds’ largest cobalt producing firm in January.
China is just not solely the world’s main client of cobalt, but in addition the world’s largest producer of refined cobalt. Nearly all of its feedstock is imported from the DRC. In line with the USGS, China’s lithium-ion battery business is answerable for almost 87 % of the nation’s cobalt consumption.
2. Kamoto
Complete 2023 manufacturing: 27,600 MT
The Kamoto copper-cobalt mine, which is situated within the DRC province of Katanga, is operated by Kamoto Copper Firm, collectively owned by Glencore (75 %) and Gécamines (25 %). Kamoto’s cobalt manufacturing has risen by greater than 15 % over the previous three years.
Along with the Kamoto underground mine, the Kamoto Copper Firm additionally owns the KOV and Mashamba East open-pit mines in addition to the Luilu refinery in Kolwezi.
3. Kisanfu
Complete 2023 manufacturing: 27,000 MT (displays estimated manufacturing values)
Additionally within the province of Lualaba, the large new Kisanfu mine is 95 % owned by Kisanfu Mining — a subsidiary managed by CMOC (75 %) and Chinese language battery large CATL (SZSE:300750) (25 %). The DRC authorities holds the remaining 5 %.
CMOC bought the Kisanfu deposit from Freeport McMoRan in 2020. The beginning-up of the Kisanfu mine in Q2 2023 is cited by Reuters as one of many main contributing elements to the document surplus of cobalt skilled by the worldwide market final yr.
4. Metalkol RTR
Complete 2023 manufacturing: 14,700 MT (displays estimated manufacturing values)
The Metalkol RTR hydrometallurgical cobalt and copper facility, situated within the DRC’s Haut-Katanga province, is operated by Eurasian Sources Group (ERG) Africa. Producing 14,700 MT of cobalt in 2023, the mine’s output ranges are up 40 % from 2020 ranges.
Metalkol RTR reprocesses historic cobalt-copper tailings that have been amassed over a long time of mining by earlier operators, together with the prevailing Kingamyambo tailings deposit and people within the Musonoi River. ERG has committed to the Accountable Minerals Assurance Course of, a part of the Accountable Minerals Initiative. The corporate’s objective is to cut back native air pollution by relocating legacy tailings to a responsibly managed facility, and it is usually working to finish baby labor within the DRC’s mining business.
It’s these commitments that in April 2024 attracted a supply deal with Electra Battery Supplies (NASDAQ:ELBM,TSXV:ELBM) wherein Metalkol will present long-term provide of cobalt hydroxide to Electra’s under-construction refinery mission in Ontario, Canada — slated to to be North America’s first battery grade cobalt sulfate refinery. In 2024, Canada dethroned China for the highest spot in BloombergNEF’s international lithium-ion battery provide chain rating.
5. Mutanda
Complete 2023 manufacturing: 11,200 MT
The Mutanda copper-cobalt mine in Lualaba Province is operated by Mutanda Mining, a completely owned subsidiary of Glencore, which holds a 95 % curiosity within the mine. The DRC authorities holds the remaining 5 % stake.
Three open pit mines comprise Mutanda’s operations, which collectively have a mine lifetime of 25 years based on the company’s website. The low-price atmosphere for cobalt led to Mutanda being positioned on care and upkeep in 2019. Glencore started a phased reopening of operations in October 2021, beginning with the processing of ore from current stockpiles.
The corporate’s web site states its intention for Mutanda to “resum(e) full mining exercise by 2024;” nevertheless, Reuters reported in late November 2023 that depleting oxide ore grades at floor might translate to a 15 % much less per yr manufacturing of cobalt except Glencore comes to a decision to put money into mining the sulfide ores under floor. The corporate is reportedly conducting a feasibility research to raised inform that call.
That is an up to date model of an article first printed by the Investing Information Community in 2019.
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Securities Disclosure: I, Melissa Pistilli, maintain no direct funding curiosity in any firm talked about on this article.
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